Financial Statement ProForma Flashcards
What are the parts of product costs
Direct materials cost, Direct Labor Cost, Factory Overhead
What are some period costs
Selling expenses, administrative expenses and salaries
What goes into COGS?
COGS = product costs (incl. raw materials and WIP) + Finished Inventory
What goes into Period Costs
Selling and administrative expenses
What goes into Manufacturing Costs?
Direct Materials
Direct Labor
Factory Overhead
What goes into the Manufacturing Cost?
Used Direct Materials
Direct Labor
Factory Overhead
What goes onto the Balance Sheet from Manufacturing Costs?
Unused Materials - Materials Inventory
Unfinished work - WIP
Finished goods inventory
From Manufacturing, what goes on the income statement?
COGS from Finished Goods that are sold
What is the flow of manufacturing costs?
Materials inventory - purchased materials
WIP - requisitioned materials and labor + factory overhead
Finished Goods - warehouse
COGS - Sold Goods
What is an overhead allocation?
Labor for the factory overhead
How is overhead allocation calculated?
Overhead costs / Direct Labor = Overhead Rate
Overhead Rate * Direct Labor per product = overhead allocated to products
what is “raw materials inventory” on a balance sheet
Materials purchased - materials requisitioned
what is WIP inventory on a balance sheet?
materials requisitioned - materials finished in production
What is “Finished goods inventory” on a Balance Sheet?
Cost of Production - COGS
How can COGS Show up on an income statement?
Sales Expenses
